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1. What did American Bitcoin earn in the third quarter?
American Bitcoin Corp. (Nasdaq: ABTC) reported on November 4 that it earned roughly $126 million in net income for the third quarter of 2026, compared with a net loss of about $57.2 million in the second quarter. The turnaround came mainly from a $197.3 million gain on its bitcoin (BTC) holdings, while adjusted EBITDA reached about $221 million.
The result is a reversal of the previous quarter, when a drop in the market value of the company's coins pushed it into the red. Unlike a typical miner's results, the headline number owes far more to the valuation of the bitcoin it holds than to the sale of newly mined coins, and that distinction shapes how the figures should be read.
The company, based in Miami, operates as both a bitcoin miner and a treasury business. It is majority-owned by Hut 8 Corp. and was launched with backing from members of the Trump family. Its quarterly release gives a detailed picture of how production, costs, reserves and per-share metrics moved over the three months ending September 30.
2. How much of the profit came from bitcoin's price?
The income statement shows a gain on digital assets of $197.3 million in the third quarter. In the second quarter, the same line recorded a loss of about $71.2 million. That swing of roughly $268 million between the two periods is larger than the quarter's entire mining revenue, which indicates how heavily the bottom line depends on the market price of bitcoin at each quarter-end.
Operating income came to about $191.8 million. Below that line, the company booked a loss of about $64.3 million on derivatives, which reduced the result before it arrived at net income of about $126 million. The bridge between those figures is not itemized beyond those components in the release summary, but the direction is clear: valuation gains lifted the quarter, and hedging-related losses took back part of them.
Such fair-value accounting is a defining feature of companies that hold large amounts of bitcoin on their balance sheets. When the price rises between reporting dates, the holdings are marked up and the difference flows through earnings as a gain. When it falls, the same mechanism produces a loss. The second quarter's net loss of $57.2 million and the third quarter's profit are two sides of that effect rather than evidence of a sudden change in how efficiently the company mines.
3. How did mining operations perform?
Mining itself was somewhat softer than in the previous quarter. Revenue from mining was about $63.4 million, down from approximately $67.0 million in the second quarter. The company mined about 891 BTC, below the roughly 932 BTC it produced in the prior quarter, a period it had described as its highest quarterly output to date.
Revenue per bitcoin mined was therefore close to $71,100, only slightly below the roughly $71,900 achieved in the second quarter. The weaker production total, rather than a major change in the price realized per coin, explains most of the decline in revenue.
Gross profit fell to about $25.8 million from about $33.0 million, which put the gross margin near 41 percent, compared with about 49 percent a quarter earlier. The company attributed the compression to higher seasonal power costs across its sites. Electricity is the largest operating expense for any miner, and rate increases that arrive in warmer months can reduce margins even when output is stable.
4. Why did the cost to mine each bitcoin rise?
The all-in cost to mine one bitcoin climbed to about $42,100 from about $36,500 in the second quarter, an increase of roughly 15 percent. The same seasonal power pricing that trimmed gross margin is the stated cause.
Even after the increase, the cost remains well below the revenue of about $71,100 earned on each coin, which is the foundation of the company's argument that it mines bitcoin at a structural discount to the spot price. Chief Executive Mike Ho made that point in his comments, saying the business continued to produce coins below market value despite the seasonal pressure on power expenses.
The cushion is meaningful for a miner because the difference between cost and price determines how much profit survives when the market weakens. A lower cost base allows a producer to keep operating through price declines that would force less efficient competitors to curtail output. At the same time, a cost that rises by about $5,600 per coin in one quarter shows how sensitive that cushion is to energy markets.
5. What happened to American Bitcoin's reserve?
The company ended September holding about 8,427 BTC, an increase of roughly 425 BTC, or about 5 percent, from the 8,002 BTC it reported at the end of June. It sold part of its production to cover operating costs while still adding to its strategic reserve.
About 3,090 of those coins are pledged in connection with miner purchases under agreements with Bitmain, the equipment manufacturer. Pledged coins remain on the company's books but are committed as part of the financing of hardware, a detail that investors typically weigh when assessing how much of a treasury is freely available.
Ho also noted that the reserve grew without the company issuing shares through an at-the-market program and without buying bitcoin on the open market during the quarter. In other words, the increase in holdings came from retained mining output rather than from raising outside capital, which limits dilution for existing shareholders.
6. What are satoshis per share, and why does the company track them?
Satoshis per share is the metric management prefers for judging progress. A satoshi is the smallest unit of bitcoin, equal to one hundred-millionth of a coin, and the measure expresses how much bitcoin stands behind each share of the company's stock. It is meant to show whether shareholders are gaining or losing exposure to the asset over time.
The figure rose about 5 percent to roughly 11,572 at the end of September, up from about 10,989 on June 30. The per-share base reflects the 1-for-15 reverse stock split that took effect on July 2. Because the split reduced the number of shares outstanding, comparisons with figures reported before that date require adjustment, which is why the company anchors the quarter-on-quarter change to the end-of-June number.
Eric Trump, the company's co-founder and chief strategy officer, pointed to the combination of roughly $126 million in net income, $221 million in adjusted EBITDA, a larger bitcoin reserve and higher bitcoin per share. He described the long-term opportunity as sitting at the intersection of bitcoin and American energy infrastructure.
7. What does adjusted EBITDA show here?
Adjusted EBITDA, which stands for earnings before interest, taxes, depreciation and amortization with further company-specific adjustments, came to about $221 million, against an adjusted loss of about $45.0 million in the second quarter. The measure is intended to approximate operating performance by removing financing and accounting items, yet in this case it still captures the large valuation gain on bitcoin, which is why it sits well above the gross profit of $25.8 million.
For that reason, analysts who want to isolate the mining business tend to look at gross profit, cost per coin and production volume instead. Those lines show a quarter in which the operation generated less revenue and kept a smaller share of it, even as the reported earnings rose sharply. Reading both sets of numbers together gives a fuller view than either one alone.
The distinction also matters for comparing the company with conventional miners, whose results depend mostly on hash rate, power contracts and the price they receive for output, and with pure treasury firms, whose results depend almost entirely on the size of their holdings. American Bitcoin combines both models, so its earnings can move sharply in either direction from one quarter to the next.
8. What is the company's scale and ownership?
At the end of the quarter, the owned fleet had a capacity of about 28.1 exahashes per second. Hash rate is the measure of computing power a miner dedicates to securing the bitcoin network, and capacity is a primary driver of how many coins a company can expect to produce.
American Bitcoin was launched in 2025 by Eric Trump and Donald Trump Jr. together with Hut 8. Earlier reporting put the Trump family's stake near 20 percent, with Hut 8 holding the remainder. Since its Nasdaq debut, the company has climbed in rankings of public companies by bitcoin holdings as it has accumulated coins.
Hut 8 published its own third-quarter results on the same day. It confirmed that it had sold bitcoin to fund share buybacks and said that its mining activity is moving into the American Bitcoin vehicle, a sign of how closely the two companies are linked.
9. What comes next for American Bitcoin?
The release leaves open a central question for investors: whether further gains in the bitcoin price can continue to outweigh higher power costs and thinner mining margins. The third quarter's profit was driven by valuation, so it will not necessarily repeat if the price weakens before the next reporting date, as the second quarter's loss illustrated.
On the day of the announcement, bitcoin traded above $80,500, while ABTC shares fell more than 5.5 percent. The decline in the stock despite the large headline profit suggests that the market is looking past the accounting gain to the operating figures, including lower production, a gross margin down to 41 percent and a higher cost per coin.
Investors will likely watch three things in the coming quarters: whether the cost to mine eases once the seasonal power pressure passes, whether production returns toward the record reached in the second quarter, and whether satoshis per share keep rising without new share issuance.